What happens at the consumer's optimum
A)The budget constraint has a slope of MUX/PX.
B)It is still possible for the consumer to increase his consumption of both goods.
C)The indifference curve would intersect the budget constraint at its centre point.
D)The slope of the indifference curve is equal to the slope of the budget constraint.

Question

Quizplus · Accepted Answer

At the consumer's optimum, the slope of the indifference curve (representing the rate at which the consumer is willing to trade one good for another) is equal to the slope of the budget constraint (representing the rate at which the market allows the trade of one good for another).

What Happens at the Consumer's Optimum